IDFC First Bank’s weight in the Nifty Bank index is expected to rise to 2.9% which will attract $39 million in passive inflows.

IDFC First Bank is seen attracting $39 million in passive inflows due to the corporate action. HDFC Bank Ltd is expected to see $11 million outflows, followed by ICICI Bank ($10 million), SBI $4 million) and Kotak Mahindra Bank ($4 million).

IDFC First Bank's weight in the Nifty Bank index is expected to increase, while other constituents will experience a slight decrease in their respective weights, said Abhilash Pagaria of Nuvama Alternative & Quantitative Research.

IDFC FIRST Bank has merged with IDFC after obtaining necessary approvals. Effective from October 1, the merger simplifies the corporate structure and enables dividend payments. Shareholders will receive 155 equity shares of the Bank for every 100 shares held in IDFC Ltd.